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Gold, Silver And WTI Crude Oil: Technical Outlook

By:
Anil Panchal
Published: Sep 23, 2016, 15:56 UTC

GOLD Following its bounce from $1306-07 support-confluence on Wednesday, comprising 100-day SMA and nine-month-old ascending trend-line, Gold prices

Gold, Silver And WTI Crude Oil: Technical Outlook

GOLD

Following its bounce from $1306-07 support-confluence on Wednesday, comprising 100-day SMA and nine-month-old ascending trend-line, Gold prices challenged an immediate TL resistance; however, the yellow metal failed to surpass the same, but didn’t dip below $1330 nearby support, and is again heading towards the same trend-line resistance around $1344-45. Given the bullion manage to clear the $1345 figure on a closing basis, it becomes capable enough to print $1358 and the July highs of $1375, which if broken could further propel the quote towards $1388 & the $1400 round figure. Alternatively, $1330 and the $1325 are likely adjacent rests that the precious metal price might avail, breaking which $1318 and the TL mark of $1308, followed by 100-day SMA level of $1307, again come alive on the chart. Should the Gold declines below $1307 on a closing basis, the 23.6% Fibonacci Retracement of its December 2015 – July 2016 upside, at $1298, could act as a barrier prior to dragging the metal to $1282 & $1275 support levels.

SILVER

silver

Alike Gold prices, Silver quotes are also near to the $20.08 trend-line which it failed to clear yesterday. Though, Silver being an industrial metal is presently having lesser strength as compared to the Gold and might revisit $19.65 support. If the white-metal declines below $19.65, the 23.6% Fibonacci Retracement of its December 2015 – July 2016 north-run, at $19.35, and the $19.00 round figure are likely consecutive downside figures to be observed ahead of looking at the 100-day SMA level of $18.60. In case of the metal’s additional downside below $18.60, the 38.2% Fibo level of $18.25 and the $18.00 – $17.90 can entertain metal Bears. Meanwhile, metal’s rally beyond $20.08 can trigger its up-move towards $20.30 and then to the $20.55 resistance, which if broken could accelerate its advances to August highs of $20.77 and to the July high of $21.12. Should the quote continue rising beyond $21.12, chances of its rally towards $21.50 can’t be denied.

WTI CRUDE OIL

oil

During its fourth positive-day, the Crude prices are near to $46.25-30 resistance confluence, including 100-day SMA & 23.6% Fibonacci Retracement of its January-June advances. However, the energy prices, even after breaking $46.30 on a closing basis, still need to confront with $46.80 TL that confined its up-moves during August – September period, which if broken can trigger its rally to $47.20 & $47.90 resistances. Given the prices continue rising beyond $47.90, the $48.65 and the $49.50 are likely next landmarks for Crude to flash. On the downside, a daily close below $44.70 might drag the quote to $44.00 and then to 38.2% Fibo level of $42.75 but a seven-month old upward slanting trend-line, at $42.00 now, becomes strong enough to restrict its further decline. If the broader supply-glut and failure of the global energy producers to agree on production-freeze, during next week’s meeting, drag prices below $42.00, the Crude becomes vulnerable enough to plunge towards $40.90 & to the $39.00 downside figures.

Cheers and Safe Trading,

Anil Panchal

About the Author

An MBA (Finance) degree holder with more than five years of experience in tracking the global Forex market. His expertise lies in fundamental analysis but he does not give up on technical aspects in order to identify profitable trade opportunities.

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